Source: Shutterstock Key Insights Advanced Micro Devices’ estimated fair value is US$95.7 based on 2 Stage Free Cash Flow to Equity Current share price of US$74.9 suggests Advanced Micro Devices is 22% undervalued In this article we are going to estimate the intrinsic value of Advanced Micro Devices, Inc. ( NASDAQ:AMD ) by projecting its future cash flows and then discounting them to today’s value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don’t get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company’s value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model . The Calculation We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company’s cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
